The Inquirer has recently posted a story about Intel planning to start constructing a new semiconductor fab in continental China. They report that the production will start in 2005. Also Intel is going to expand its own manufacturing in the Asian region by opening more production lines in Malaysia and one more country, which hasn’t been yet disclosed.

Intel has already opened a research center in China, which is developing software, and a bad producing flash-memory. The company is very pleased with their functioning and is eager to start the CPU production in this country as well now. This decision has a few advantages to point out. First, China is a rapidly growing and very promising market, so that they could save time and money transporting the goods there once the fab in also in China. Second, China is a country with very low-cost labour, which is sometimes quite professional at the same time. Also the Chinese government supports those companies which are wiling to open production lines in this country, which might be really helpful for Intel processors promotion there.

The source also claims that this semiconductor fab is most likely to be established somewhere around Shanghai.